TaxTMI 
TaxTMI 
2026 (6) TMI 1442
X X X X Extracts X X X X
X X X X Extracts X X X X
....Counsel for the Dept. ORDER PER BENCH These are the appeals filed by the various assessee's challenging the separate orders of the NFAC, Delhi in respect of the A.Ys. 2020-21 and 2021-22. For the sake of easy reference, the details of the appeals as well as the issues involved are tabulated below: S.No. Appeal No. A.Y. Date of order of NFAC & the reason Issues involved 1. ITA No. 1831/Bang/2026 2020-21 18/03/2026 Dismissed on the ground of limitation Retrenchment compensation and the leave encashment. 2. ITA No. 1832/Bang/2026 2021-22 17/03/2026 Dismissed on the ground of maintainability Retrenchment compensation. 3. ITA No. 1856/Bang/2026 2020-21 27/02/2026 Confirmed the restriction of the leave encashment. Leave encashment. 4. ITA No. 1857/Bang/2026 2021-22 10/03/2026 Dismissed on the ground of limitation Retrenchment compensation 5. ITA No. 1858/Bang/2026 2020-21 27/02/2026 Dismissed on the ground of limitation Retrenchment compensation. 6. ITA No. 1859/Bang/2026 2020-21 10/03/2026 Dismissed on the ground of limitation Retrenchment compensation. 7. ITA No. 1860....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lso offered the said compensation as income in the return of income filed. Later on, the assessee's came to know about the decision of the Hon'ble Chandigarh Bench of this Tribunal in the case of Harish Kumar vs. ITO reported in (2025) 175 taxmann.com 379 in which the retrenchment compensation received by the BSNL employees were eligible for exemption u/s. 10(10B) of the Act. 5. Similarly, in some of the assessee's case, the leave encashment received was claimed as exemption u/s. 10(10AA) of the Act as per the statutory limits prevailing at that time. During the disputed assessment years, the exemption available u/s. 10(10AA) is restricted to Rs. 3,00,000/- and subsequently the same was enhanced to Rs. 25,00,000/- by way of Gazette Notification dated 24/05/2023. The assessee's had also disputed the restricted amount based on the enhancement granted by the Government. 6. The assessee's had filed their return of income showing the retrenchment compensation as taxable income and also claimed the leave encashment of Rs. 3,00,000/-. The said return was processed by the CPC and the return was accepted and an intimation u/s. 143(1) was made. Thereafter the order of the Hon'ble Chand....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e appeals are not allowed on technicalities, it would amount to unjust enrichment to the revenue since the levies are made against the provisions of the Act and therefore prayed to allow the appeals. The respective Ld.ARs also submitted that some of the Ld.CIT(A)s had condoned the delay in filing the appeals even though there were delays and prayed to take a uniform view since the assessee's are all belonged to the same category of employees employed by the BSNL. The assessee in ITA Nos. 1857 & 1859/Bang/2026 had filed a common paper book enclosing the written submissions as well as the orders of the various Tribunals. 11. The Ld.DR submitted that the assessee's are not entitled to reagitate the issue and also submitted that the assessee's had voluntarily filed their return of income declaring the incomes as taxable and therefore they cannot now dispute the same before the appellate authorities for the first time. Similarly, the Ld.DR submitted that there are no valid reasons stated by the assessee's to condone the delay and therefore the appeals dismissed on the ground of limitation are in order. The Ld.DR also relied on the judgment of the Hon'ble Supreme Court reported in (20....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appeals, the Coordinate Benches have condoned the delay in the case of BSNL employees on identical facts and circumstances. Thus on the parity itself, the appeal of the assessee should have been admitted by the ld. CIT(A). Accordingly, I reverse the order of the ld. CIT(A) in not condoning the delay." 15. Similarly, the other issue of exemption claimed on the leave encashment was also addressed by the Hon'ble Kerala High Court in the above referred judgment by holding that the retired employees from BSNL under the Voluntary Retirement Scheme, 2019 are entitled for the leave encashment tax exemption as they are deemed to be Central Government employees. We have also considered the decisions of the Hon'ble Jaipur and Indore Benches in ITA No. 1139/JPR/2025 dated 07/10/2025 and ITA No. 233/IND/2025 dated 27/02/2026 wherein it was held that the enhanced limit of exemption of Rs. 25,00,000/- introduced by the Gazette Notification No.31/2023 dated 24.05.2023 w.e.f. 01/04/2023 u/s. 10(10AA) is a beneficial one and it should be applied at the time of the appellate jurisdiction. 16. Therefore both the issues are covered by the earlier orders of the Coordinated Benches of this Tribuna....